Hi Anjali,
Dear friends, can anyone please suggest what the trend is regarding deputation allowance? In public sectors, it's normally 10% of basic pay, but I would like to have detailed information on the Private sectors. Thanks.
The Private sector generally has a flexible approach unlike the PSUs, and the trend is as follows:
Assume an executive is deputed to another location for, let's say, six months.
- His salary component includes a variable component called a special allowance or deputation allowance, which ranges from 20-40% of CTC.
- His lodging and boarding expenses are taken care of.
- The company takes care of his travel expenses for his spouse and kids for three trips only.
- His telephone limits for personal calls are borne by the company as per the mutually agreed reasonable limits.
- His travel expenses to the location where his family is based on weekends are paid by the company for two trips per month.
Hope this information helps.
Regards,
Rajat Joshi